From when does interest run on additional tax due from a discovery assessment?

The correct answer is that interest runs on additional tax due from a discovery assessment from the annual submission date to the day before payment is made. This means that the interest accumulates from the official deadline for the tax return until the taxpayer has fully settled the additional amount owed.

This approach reflects a fundamental principle within tax law that ensures taxpayers are accountable for timely payments. The annual submission date serves as a key reference point, highlighting that if additional tax is assessed after the return has been filed, the taxpayer is liable for interest accrued from that deadline. It encourages prompt payment as well by ensuring that the longer a taxpayer delays in settling the tax, the more they will owe due to accruing interest.

The other options do not align with this principle. For instance, starting from the day the assessment is raised may not account for the period before the assessment was issued, which is critical for determining tax liability. Similarly, stating interest runs from the payment date onwards would imply that no interest is owed until payment is made, which does not reflect the continuous responsibility to pay taxes accurately and on time. Lastly, stating that interest begins immediately upon the submission of the tax return ignores the specific role of the annual submission date in establishing the timeline for interest calculations.